A recent study estimates that 47% of foreclosed properties are still occupied.
So you’ve been researching how to stay in my home after foreclosure, well you’re going to want to keep reading…
When you first see that statistic of 47% of foreclosed properties still being occupied, that may surprise you, but it doesn’t surprise us.
What most people don’t realize is that banks are not in the business to own homes.
Banks are in business to loan people money. But when they have to foreclose on a house… the bank is forced to own the home until they’re able to sell it to get all or most of their money back.
But, what they’ve found is that when a Dallas / Fort Worth foreclosed house becomes vacant… there’s a much greater chance that the house will fall into disrepair. So this is all really good news if you’re wondering “how to stay in my home after foreclosure”! Often times the bank would rather have you remain in the property even after you stop making your payments and even after the foreclosure process has started because it wards of vandals and keeps the house in good working order.
Let’s think about this. If the house is sitting vacant, what if a leaky pipe bursts. Who’s going to know that the house has flooded? Or if it’s sitting vacant, anyone could break in and either trash the place or start living there without permission, and as you can imagine, that can turn into a mess!
There’s been a lot of talk in the media about people living for free after their house has been foreclosed on – and even many stories about banks “abandoning” properties altogether.
In those stories, people are avoiding house payments for months, even years.
Man, that sounds great!
So how to stay in my home after foreclosure? You’re telling me it’s possible?
Wait… it can’t be that simple, right?
Right.
No bank would intentionally neglect to collect your payments. The only way that you could get to live without making any payments is when some major mistakes are made.
But, hey you might get lucky! It’s possible, and it’s happened before. However, it’s not exactly legal to avoid payments that you owe, and it can get you in some serious trouble.
So why are so many foreclosed homes still occupied? It’s important to remember that no one wants the house to ever be vacant. Vacant homes are targets for vandalism and crime.
By allowing you to stay in the property, the property has a better chance of maintaining its value, and therefore, the bank has a better chance of maintaining the value of their investment. So it’s actually in their best interest to keep the home occupied. So even though the bank may ask you to leave because of how the foreclosure laws are structured in TX, in all actuality, they might really want you to stay.
There are a few perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Dallas / Fort Worth
Not all these options are available (depending on your situation and your lenders), and you’ll need some expert advice and counsel along the way to help you get through this.
1) Wait it out. Honestly, this is a pretty bad option, but it seems to be increasingly more and more common. You definitely shouldn’t run away and abandon your house when the first notice of default shows up. Remember that the proceedings and the process takes months and sometimes even years. It’s not over until it’s over, so don’t give up too early. On the other hand, don’t wait until the sheriff shows up to evict you to start packing up your stuff.
2) Go to court. In very rare cases, judges are granting stays and delaying evictions. This is really only a valid option if you (and your attorneys) can prove that the bank has neglected a legal requirement during the foreclosure process. Over the past few years, a lot of fraudulent behavior at banks has been discovered – so we may see an increasing trend of homeowners using the courts to stop foreclosure. Fighting banks with lawyers is very difficult, expensive and time-consuming, even if you’ve got a perfect case (most people don’t stand a chance).
3) Propose a move-out bonus. Here’s an interesting concept that you probably haven’t heard of… Often buyers of occupied foreclosure properties spend thousands of dollars on lawyers and other costs associated with an eviction, so why not find a way to take some of that money for yourself? It’s known as “cash for keys”. It sounds a little greedy, but when you’re in a crunch and trying to figure things out for you and your family, it’s certainly something to keep in mind. And, you can help out the bank and the new buyers by not abandoning the house to squatters before they’re ready to take possession.
4) Rent it back. So if you’ve asked “how to stay in my home after foreclosure,” here’s yet another potential option for you. It may sound crazy, but some banks are willing to allow the previous homeowners to rent their home back from the bank. So the bank becomes your landlord, but that’s only a short-term fix though, as they’ll eventually want your agreement to vacate the premises as soon as they find someone to purchase the property. In some cases, we here at Madison Lea Homes can even purchase the property, and then rent it back to you.
It’s really good that you’ve taken the time to read this page and explore all your options. We help homeowners like you to find creative solutions all the time.
We can’t help everyone, but we might be able to help you.
We buy local Dallas / Fort Worth TX houses like yours from people who need to sell fast!